Terrorism Insurance

Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities. It is considered to be difficult for insurance companies, as the odds of terrorist attacks are very difficult to estimate and the costs high, making the setting of premiums a difficult matter.

Netherlands

Insurance payments related to terrorism are restricted to a billion euro per year for all insurance companies together. This regards property insurance, but also life insurance, medical insurance, etc.

US

On November 26, 2002 US President George W. Bush signs into law the Terrorism Risk Insurance Act which creates a federal backstop for insurance claims related to acts of terrorism.

 

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